The important field to take note here is the Type field. The type field determine the Journal Template will appear in which journal window - General, Sales, Purchase, Cash REceipts, Payments, Assets, Intercompany or Post Dated.

You will be prompted to select the journal template at journal window if you have created more than 1 journal templates for the same journal types. For example, if you have created 4 journal templates for General Journal, then you will be prompted to select a journal template when you open the General Journal window.